Tesla has increased deliveries overall, the company said on Wednesday that the average sales price per vehicle dropped 11 percent on an annual basis, with more buyers moving to the less expensive Model 3 and Model Y.
Net revenue excluding share-based compensation payments to Musk rose from $386 million last year to $903 million, but the company fell short of average analyst estimates for a Tesla’s quarterly income, at $10.74 billion, marginally exceeded analyst estimates of $10.4 billion.
Tesla grew its presence dramatically in 2020 under Musk’s leadership, bucking a pandemic and economic upheaval with stable sales and profitable quarters at a time when losses were announced by many carmakers. Tesla was able to enter the S&P 500 Index due to its performance, defying long-term critics who had bet against the stock.
Tesla expanded production in China during 2020 and began selling its locally manufactured Model Y sport utility vehicle there last month at price analysts claim would disrupt the traditional luxury car market.
But local challengers, including Nio Inc and Xpeng Inc, are facing increasing competition from the group.
Tesla has also started building manufacturing factories for vehicles and batteries near Berlin, Germany, and Austin, Texas, and on Wednesday said it remained on track to start deliveries this year from each location.
But the competition is now underway within the car industry to produce electric vehicles to reach emissions goals and challenge the market lead of Tesla.
This year, several carmakers are expected to introduce new EV models, including sport utility vehicles to compete with the Model Y, such as Mustang Mach-E of Ford Motor Co and ID.4 of Volkswagen AG.
Challenges to the yet-to-be-released Cybertruck of Tesla come from the electric Hummer truck of General Motors Co.
Tesla has been open to competition without fear since its inception and has won it all. The increase in EV sales by rivals would also dry up the profits of Tesla from environmental regulatory credits it offers to other automakers.
$401 million, or 4 percent of Tesla’s automotive sales, came from those credits in the fourth quarter.